Report: America Needs More Warehouse Space, and Fast

By Sheridan Fifer

According to real estate firm CBRE, the United States has too few warehouses to cope with the deluge of online orders and returns. This holiday season, CBRE estimates that $70.5 billion worth of online purchases will be returned. Some retailers are already converting their stores to ship online orders, which have a much higher return rate than in-store purchases – up to 30%. Returns are expensive for retailers, who have long grappled with how to mitigate the costs of processing them, but CBRE says the problem is even more fundamental: retailers lack the warehouse space to store and process online order returns. 

As much as 400 million square feet of additional warehouse space could be needed over the next five years just to process returns, CBRE said...

Read the full story at CNBC.